Take-up

For prime mid-box units in Newcastle, transactional activity in Q1 2026 totalled 121,000 sq ft across two transactions, up 7% year-on-year and 19% above the pre-pandemic average of 102,500 sq ft. Across the size bands, units between 40,000–60,000 sq ft accounted for 47% of take-up and 60,000–80,000 sq ft accounted for 53%. There were no transactions between 20,000–40,000 sq ft and between 80,000–100,000 sq ft in Q1 2026.

Occupier Sector Take-up

By occupier sector, the transactional activity came from two sectors: third-party logistics (3PLs) accounting for 53% and manufacturing companies accounting for 47%.

Supply

The current availability stands at 1.01 million sq ft across 17 units. This has decreased by 1% quarter-on-quarter but is up by 8% year-on-year. The majority of available space is for units between 60,000–80,000 sq ft.

By size band for units between 20,000 – 40,000 sq ft, available supply totals 64,000 sq ft, followed by units between 40,000–60,000 sq ft at 355,000 sq ft, 60,000–80,000 sq ft at 416,000 sq ft and 80,000–100,000 sq ft at 182,500 sq ft.

Speculative Pipeline

There is 75,000 sq ft currently under construction across two units. Both units are between 20,000–40,000 sq ft.

In Q1 2026, there were 75,000 sq ft of speculative announcements and 118,000 sq ft of speculative completions. Both units under construction will be reaching practical completion in Q4 2026.

Years of Supply

Across Newcastle, there is 1.83 years of supply based on the three-year average annual take-up. By size band, there are 0.39 years of supply in the 20,000–40,000 sq ft range, 2.42 years of supply in the 40,000–60,000 sq ft range, 2.22 years in the 60,000–80,000 sq ft range and 3.14 years of supply in the 80,000 – 100,000 sq ft range.

Quoting Rents

The prime quoting rent for Newcastle has stayed stable, standing at £9.00 psf.

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